Mitsui To Do LBO Loans In US With GE Capital

Mitsui & Co. Ltd., a major trading house, announced that Mitsui will provide LBO loans to US companies with help from GE Capital, who made a strategic agreement with Mitsui in November 2010. Mitsui plans to make a portfolio consisting of 20 companies' loans with a total of about US$ 200 million this year. With its investment expertise, the major trading company will also consider managing money for institutional investors in the future.

SMFG To Set Up Funds For Growing Companies

SMBC Venture Capital., an investment unit of SMFG Group, announced that SMBC Venture Capital set up 3 private equity funds for a total of 14 billion yen. They are SMBC Venture Capital Fund #1 (8 billion yen) which is an orthodox VC fund, SMBC Business Development Fund #1 (5 billion yen) which is a buyout fund for SMEs, and SMBC Strategic Investment Fund #1 (1 billion yen) which invests in funds newly set up by universities or corporations. All investment money comes from Mitsui Sumitomo Bank.

INCJ To Invest US$680 Mil In Landis+Gyr

Innovation Network Corporation of Japan (INCJ), a unique public-private investment fund, announced that INCJ will invest in Landis+Gyr AG, a global leader in energy management solutions for utilities, with Toshiba Co., a major comprehensive electrical manufacturer. Toshiba will establish a SPV in Switzerland as a vehicle for the acquisition of Landis+Gyr, capitalized at US $1700 million. INCJ will invest US $680 million in the SPV and secure 40% of its equity as a strategic investment partner.

PE-backed Intelligence To Buy HK Consulting Group

Intelligence LTD., KKR-backed staffing agency, announced that Intelligence acquired Staffing Consultancy Ltd. and its group company, which provide human resource services in HK and mainland China. Intelligence's Chinese operations currently focuses on staffing services. With this acquisition, they will be able to provide comprehensive HR services. The US giant buyout shop KKR acquired Intelligence for $356 million in June 2010. Since then KKR has supported its efforts to cultivate international labor markets.

DRC To Tender Offer For Kojitsu

DRC Capital Ltd., a Tokyo-based midsized buyout firm, announced that DRC will make a tender offer for Kojitsu Co., Ltd., a climbing goods store operator. The TOB price is set at 130 yen, a 35.4% premium over a 3 month average. DRC is the second largest shareholder (17%). Japan Fine Art Co., the laregest shareholder (28%), accepted the offer. The deal size maximum consideration is about 3.14 billion yen.

Kawaijuku Group To Tender Offer for Mainichi Comnet

KJ Holding Co., a holding company of Kawaijuku Education Institution Group, announced that KJ will make a tender offer for Mainichi Comnet Co., Ltd., a student-focused real estate service provider. The TOB price is set at 405 yen, a 27% premium over 3 month average. Mainichi Comnet plans to broaden its customer base, with help from Kawaijuku who provides educational services to teenage students.

Mitsui To Tender Offer For Singpore Port Operator

Mitsui & Co., Ltd., a major trading house, announced that it will conduct a tender offer for Portek International Limited, a SGX-listed port operator. The founding family of Portek, the largest shareholder, accepted the offer. The TOB price is set at S$1.40, a 50.5% premium over a 3 month average. The estimated deal size is S$221 million at a maximum of US$180 million. Portek is a turnkey provider of equipment, services, and solutions for the port industry globally as well as an operator of medium sized container and multipurpose ports. Through this acquisition, Mitsui plans to improve and increase the productivity and efficiency of its logistic operations around the world.

Mitsubishi Corp and China's Creat Group to Set Up JV Funds

Mitsubishi Corp. and China's Creat Group Co. will establish a 50-50 joint venture, MC Creat Fund Management, in Hong Kong to set up funds that will provide capital to Japanese companies aiming to expand their business in China.

The first JPY 10 billion fund will target (i) midsize Japanese companies with strong technologies or brands, but need financial and operational support to tap into the Chinese market. The fund will also invest in (ii) joint ventures between Japanese and Chinese firms and (iii) Chinese companies with the potential to become strategic partners of Japanese companies.

Mitsubishi is establishing a 100% subsidiary, Kizuna Partners, which will source Japanese companies for investments.

Govt Pension Performance Sank To Minus 0.25% in 2010

The Government Pension Investment Fund (GPIF) reported its yield from fiscal 2010 sank to minus 0.25%, a sharp deterioration from the positive 7.91% of the year before. GPIF blamed the weak performance on the falling value of foreign bonds and domestic stocks as a result of the yen's prolonged strength and the March 11 earthquake. The GPIF's assets under management were 116 trillion yen at the end of fiscal 2010.

GOTO To Delist via MBO

GOTO Co., Ltd. a Shizuoka-based roadside chain store operator, announced that it will accept a tender offer from an investment vehicle set up by the current CEO of GOTO. The TOB price is at 395 yen, a 80% premium over a 3 month average. Shizuoka Bank is ready to provide up to 2.5 billion yen in financing. GOTO will be delisted upon the successful conclusion of the deal.

Nippon Life To Invest In Allianz via Convertible Sub. Notes

Nippon Life Insurance Company, the Japanese largest insurer, announced that it will purchase 30-year convertible subordinated notes issued by Allianz Financial Ⅱ B.V., a finance subsidiary wholly owned by Allianz SE, one of the leading integrated financial services provider worldwide. The notes are guaranteed by Allianz and the investment amount well be EUR 500 million.

Asahi Breweries To Tender Offer For NZ beverage Maker

Asahi Group Holding., formerly known as Asahi Breweries Ltd., announced that it will conduct a tender offer for Charlie's Group Ltd., a manufacturer and marketer for premium beverage brands in New Zealand. Charlie's board of directors has recommended that shareholders accept the offer. The TOB price is NZ$ 0.44 per share, a 54% premium to the 3-month VWAP. The acquisition of Charlie's will further strengthen Asahi's overseas beverages business and provide an entry into the New Zealand market.